What is the journal entry for recording a sale of goods for cash?

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Question: What is the journal entry for recording a sale of goods for cash?

Options:

Correct Answer: Debit Cash, Credit Sales Revenue

Solution:

When goods are sold for cash, the cash account is debited to increase it, and sales revenue is credited to recognize the income.

What is the journal entry for recording a sale of goods for cash?

What is the journal entry for recording a sale of goods for cash?

Step 1: Identify the accounts involved in the transaction. In this case, we have 'Cash' and 'Sales Revenue'.
Step 2: Determine the effect on the Cash account. Since cash is received, we will increase the Cash account.
Step 3: Determine the effect on the Sales Revenue account. Since we are earning money from the sale, we will increase the Sales Revenue account.
Step 4: Record the journal entry. Debit the Cash account and credit the Sales Revenue account.

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